Like the AmerisourceBergen Corporation (click here to see the post about it), the stocks of Watson Pharmaceuticals, Inc. (WPI) listed in the New York stock exchange have been going up by a year now. They are both in the healthcare sector under the biotechnology and drug industry. Just a heads up, this isn’t the “Watsons Store” you’ll see around Asia. Watson Pharmaceuticals specializes in development, manufacturing, marketing, sale and distribution of brand and generic pharmaceutical products. In the 4th quarter of 2009, they acquired Robin Hood Holdings Limited, Cobalt Laboratories, Inc. and the Arrow Group. They are currently one of the more stable companies in their industry as their stock value and acquisitions reflect it.
In the stock chart of Watson, we can see a 19-month ascending channel. If the stocks break below the ascending channel’s support line, the price could head to the next support at $41.27. If it continues to go up there could be some selling pressure at the $45 resistance which is the 5-year high. Personally, until the channel gets broken and the stock reverses, I’d remain bullish on this as well.